Home
>
Small Business
>
Family Business and Conflicts

Family Business and Conflicts

What is a Family Business?
A family business is basically any business in which the majority of the ownership or control lies within a family. Involvement of members of family in a business can bring with it its own complexities because the line between the business system is sometimes separated by a thin line from the family system. Sometimes these 2 positions overlap causing all sorts of conflicts.

Families involve emotion with includes relationships that carry with it loyalties and natural love whereas a business system is unemotional and coldly designed to extract the highest profit from that venture.

Styles that are necessary in a family situation may not always suit the business situation. Membership of a family is by birth whereas membership of a business should be by investment and performance.

Families deal with family matters in a certain way that entails the head of the family making decisions either alone or in consultation with another senior member of the family. The business however, has its own systems and methods of communication as well as styles involving the resolution of conflicts and finalizing decisions.

Conflict between Business System and Family System
Conflicts arise in family business when the roles of one system intrude into the roles of the other and because each member of the family is basically involved in a dual system problems arise. The overlap of these two systems become really apparent when there are conflicts in interest arising between the family members and the business.

Most families regard the concerns as being paramount in all cases but a prudent business owner will ensure that family concerns and business concerns are properly balanced so as to achieve the maximum satisfaction for both systems and people involved. Too often the emotional bonds of family tend to short cut processes which have been designed to ensure the security of the business and to maximize its success.

For example, family members are put into positions of power where they do not have experience or knowledge simply because they are family members. If they came through the normal interview and selection process they would not get that position. This is clearly a case where family considerations breach the normal standards of how businesses should be run in order to achieve maximum profitability.

Specific Issues in the Family Business
A business is difficult enough to manage at the best of times. A family business however brings with it its own issues and problems and these need to be clear before anyone gets involved in a family business whether that person is part of the family or an outsider. A family business is subject to the same problems that beset every other business except they usually take on an extra one or two, simply because relatives are involved.

Some of the issues that most businesses have to face include the following:

Leadership.
Who is the leader in the business that makes the final decision and how will it appear for the business to move onto the next generation.

Family Harmony.
What needs to be done to ensure that there is harmony in the family.

Successors.
Who will be chosen to succeed and run the family business when the present manager retires or dies? Any family member who is given the responsibility of managing the family business must ensure that sound business and management practices are carried out.

Engagement.
Who should participate in the family business and under what conditions?

Passing over the Business.
What has to be done to allow the entrepreneur to pass over the business to the next family member?

Non-family people.
How are non-family executives and managers to be attracted and retained and what powers do they have to make decisions that may go against the wishes of family members in the business.

Compensation.
Should family members be paid for work which they are not qualified in? And should their salaries be at the same level as non-family members with greater expertise and knowledge in a particular area?

Protect Finances.
Many relatives regard the company as their own personal bank and as a place where they can do whatever they wish. The prudent family 'boss' needs to make decisions, however unpopular he becomes with family members, that will ensure the ongoing protection and financial health of the business.

All the issues above have to be assessed in a family business situation because the potential for business conflict and family stress can be very high. The way to diffuse conflict and eliminate stress involves identifying the issues causing the conflicts and stress and then discussing these issues with all the family members involved.

StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.

shuttle to Midway Beardstown .. Lockport Chicago limo O’Hare

In The News:

Kurt the CyberGuy breaks down whether it’s better to remove your personal information from the web yourself or use a data removal service.

Google’s scam detection features, powered by artificial intelligence, are a significant step forward in safeguarding Android users from fraud.

The FBI has issued a warning that scammers are impersonating doctors, police and banks using spoofed numbers as "smishing" texts surge nationwide.

Communities with unreliable internet service stand to gain after Amazon's Project Kuiper launched its first full batch of satellites into orbit April 28.

Tech expert Kurt “CyberGuy" Knutsson says unsubscribing from spam might actually backfire. Learn when to avoid it and stop junk effectively.

Tech expert Kurt “CyberGuy" Knutsson talks about how the first nonstop beating heart transplant, called zero ischemic time, at Taiwan hospital changes surgery.

Kurt “CyberGuy" Knutsson: FBI warns of "time-traveling" hackers.

Kurt “CyberGuy" Knutsson talks about a soft, vine-like robot called SPROUT that aids safe survivor rescues in collapsed buildings.

Health insurance giant Blue Shield of California confirmed it had been sharing private health data of 4.7 million users with Google for three years without even realizing it.

Delta and JetZero’s blended wing body aircraft marks a meaningful step toward a cleaner, quieter and more efficient future for air travel.

Recent reports show many common passwords can be cracked in literally seconds. Kurt the CyberGuy explains how to strengthen your passwords.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Iron, a robot that stands 5 feet, 8 inches tall and weighs 154 pounds, combines advanced artificial intelligence with human-like movement and exceptional vision.

Hertz, the rental car giant, recently confirmed that customer information was exposed through a cyberattack on one of its software vendors.

There are a number of features with AirPods you may or may not know about to take your listening experience to the next level. Kurt the CyberGuy explains.

These 35 Chrome extensions have privacy and security concerns. Tech expert Kurt “CyberGuy" Knutsson says to delete them now.

Tech expert Kurt “CyberGuy" Knutsson says 329,000 mph fusion rocket promises to be fast, disruptive and enable deep-space missions.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Tech expert Kurt “CyberGuy" Knutsson says a new autonomous AI is a game changer that also raises privacy risks. Is your data safe?

Tech expert Kurt “CyberGuy" Knutsson says robots and drones are revolutionizing fruit farming with faster picking and smarter handling.

Landmark Admin revises May 2024 cyberattack scope to show twice as many people were affected. Kurt “CyberGuy" Knutsson gives tips to help stay safe from an insurance data breach.

Tech expert Kurt “CyberGuy" Knutsson talks about how Yamaha’s hydrogen outboard motor could revolutionize boating with zero emissions.

Tech expert Kurt “CyberGuy" Knutsson reveals how to memorialize or remove a deceased loved one’s Facebook account and protect their digital legacy from misuse or scams.

Tech expert Kurt “CyberGuy" Knutsson says an Apple Watch saved psychiatrist Amanda Faulkner by detecting deadly leukemia early.

Scammers and fraudsters are increasingly targeting the most vulnerable, especially nursing homes and the personal data of their residents. Kurt the CyberGuy has safety tips.

Family Business and Conflicts

Small Business